OTCPK:NGKI.F

Stock Analysis Report

Executive Summary

NGK Insulators, Ltd., together with its subsidiaries, manufactures and sells electric power related equipment in Japan and internationally.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has NGK Insulators's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:NGKI.F

2.2%

US Machinery

0.6%

US Market


1 Year Return

-21.6%

OTCPK:NGKI.F

5.4%

US Machinery

3.2%

US Market

NGKI.F underperformed the Machinery industry which returned 5.2% over the past year.

NGKI.F underperformed the Market in United States of America which returned 3.8% over the past year.


Share holder returns

NGKI.FIndustryMarket
7 Day0%2.2%0.6%
30 Day0%2.1%2.1%
90 Dayn/a1.9%2.0%
1 Year-21.6%-21.6%7.6%5.4%5.5%3.2%
3 Year-36.1%-36.1%56.4%46.1%46.8%37.2%
5 Yearn/a52.5%33.6%61.5%43.6%

Price Volatility Vs. Market

How volatile is NGK Insulators's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is NGK Insulators undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

NGK Insulators's share price is below the future cash flow value, and at a moderate discount (> 20%).

NGK Insulators's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

NGK Insulators is good value based on earnings compared to the US Machinery industry average.

NGK Insulators is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

NGK Insulators is poor value based on expected growth next year.


Price Based on Value of Assets

NGK Insulators is good value based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

How is NGK Insulators expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

NGK Insulators's revenue is expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).

NGK Insulators's earnings are expected to grow by 13.9% yearly, however this is not considered high growth (20% yearly).

NGK Insulators's revenue growth is positive but not above the United States of America market average.

NGK Insulators's earnings growth is positive but not above the United States of America market average.

NGK Insulators's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

NGK Insulators is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has NGK Insulators performed over the past 5 years?

2.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

NGK Insulators's year on year earnings growth rate has been positive over the past 5 years.

NGK Insulators's 1-year earnings growth is negative, it can't be compared to the 5-year average.

NGK Insulators's 1-year earnings growth is negative, it can't be compared to the US Machinery industry average.


Return on Equity

NGK Insulators has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

NGK Insulators used its assets less efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

NGK Insulators's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

  • Explore strong past performing companies in the capital goods industry.

Financial Health

How is NGK Insulators's financial position?


Financial Position Analysis

NGK Insulators is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

NGK Insulators's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

NGK Insulators's level of debt (46.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (48.5% vs 46.9% today).

Debt is well covered by operating cash flow (26.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 78.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.9x debt.


Next Steps

Dividend

What is NGK Insulators's current dividend yield, its reliability and sustainability?

3.43%

Expected Dividend Yield


Dividend Yield and Payments Analysis

NGK Insulators's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

NGK Insulators's dividend is below the markets top 25% of dividend payers in United States of America (3.77%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.2x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of NGK Insulators's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Taku Oshima (63yo)

5.1yrs

Tenure

JP¥126,000,000

Compensation

Mr. Taku Oshima has been the President and Representative Director of NGK Insulators, Ltd. since June 27, 2014. Mr. Oshima served as a Senior Vice President of NGK Insulators, Ltd. until June 27, 2014 and  ...


CEO Compensation Analysis

Taku's remuneration is lower than average for companies of similar size in United States of America.

Taku's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.2yrs

Average Tenure

63yo

Average Age

The tenure for the NGK Insulators management team is about average.


Board Age and Tenure

4.1yrs

Average Tenure

63yo

Average Age

The tenure for the NGK Insulators board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • Tadaaki Yamada

    Senior VP & GM of HR Department

  • Susumu Sakabe (61yo)

    Senior VP

  • Ryohei Iwasaki

    Director

  • Hideaki Shindo

    VP & GM of Finance Department

  • Takaya Teshima

    Senior VP & Group Executive of Process Technology Business Group

    • Tenure: 3.0yrs
  • Taku Oshima (63yo)

    President & Representative Director

    • Tenure: 5.1yrs
    • Compensation: ¥126.00m
  • Hiroshi Kurachi

    Senior VP and General Manager of Sensor Div. & Ceramic Products Business Group

  • Yukihisa Takeuchi (64yo)

    Executive VP

    • Tenure: 4.2yrs
  • Shuhei Ishikawa

    Senior VP

  • Hiroshi Kanie

    Executive VP & Director


Board Members

  • Atsushi Matsuda

    Senior VP

    • Tenure: 1.1yrs
  • Hiroyuki Kamano (74yo)

    Outside Director

  • Susumu Sakabe (61yo)

    Senior VP

  • Ryohei Iwasaki

    Director

  • Taku Oshima (63yo)

    President & Representative Director

    • Tenure: 5.1yrs
    • Compensation: ¥126.00m
  • Yukihisa Takeuchi (64yo)

    Executive VP

    • Tenure: 4.1yrs
  • Nobumitsu Saji (61yo)

    Director & Senior VP

  • Shuhei Ishikawa

    Senior VP

  • Hiroshi Kanie

    Executive VP & Director

  • Chiaki Niwa

    Senior VP

Company Information

NGK Insulators, Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NGK Insulators, Ltd.
  • Ticker: NGKI.F
  • Exchange: OTCPK
  • Founded: 1919
  • Industry: industrial machinery
  • Sector: capital goods
  • Market Cap: JP¥511.005b
  • Listing Market Cap: JP¥4.728b
  • Shares outstanding: 321.79m
  • Website: Click here

Number of Employees


Location

  • NGK Insulators, Ltd.
  • 2-56, Suda-cho
  • Mizuho
  • Nagoya
  • Aichi
  • 467-8530
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
5333TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
NGKI.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
NGIDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

NGK Insulators, Ltd., together with its subsidiaries, manufactures and sells electric power related equipment in Japan and internationally. It operates through Power, Ceramics, and Electronics segments. Th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/24 01:52
End of Day Share Price2019/06/17 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.